Success tips when doing business in Afghanistan
- At most shops in Afghanistan, bargaining is expected. Showing emotion, leaving and coming back and asking around until prices go down are all common behavior. Shop owners may even come find you if they are willing to give you a lower price than others;
- Because Afghanistan companies are not as well-versed with international business and Western law practices, we encourage our Clients to consistently use and sign contracts of service;
- Hiring reliable and experienced workers that speak fluent English is difficult, especially with governmental restrictions on the number of foreign workers allowed in companies. Healy Consultants can assist our Clients in its Human Resource needs by placing advertisements in the major newspapers like the Daily Afghanistan and Bakhtar News Agency when helping Clients with business registration in Afghanistan;
- As Islam is the predominant religion in Afghanistan, the holy month of Ramadan is observed, with fasting practiced by nearly all Afghans. Foreigners are not expected to fast, though they are expected to not eat, drink, smoke, or chew gum in public. Be prepared for many Afghan businesses to be closed or for normal operations to slow down for several days;
- Islam culture is also pervasive in other ways. The call to prayer is heard 5 times a day and nearly all Afghan citizens will stop to pray during these times. Also, free mixing of genders only occurs within the family. Women are expected to dress conservatively and to avoid making eye contact with men, while men should not initiate social conversations with women that are not their wives. Men and women should never touch each other under any circumstances;
- When you are incorporating in Afghanistan, it is important to find out what Afghan registrations and licenses apply to your firm. This can be a complex area, as local, state, territory, and federal governments handle registration and licensing for various aspects of your business.
Interesting facts about Afghanistan
- Afghanistan celebrates the New Year, which they call Nawroz, on March 21st;
- The largest-city in Afghanistan, Kabul, has a population of 3.2 million;
- Poetry is very important to Afghanistan culture. In Herat, it is common for large groups to gather on Thursday nights to share verses of old and new poetry;
- The national game of Afghanistan is called Buzkashi. The sport involves two teams of players riding on horses attempting to grab a goat;
- When Afghanistan was under Taliban rule, women and girls were restricted from going to school, working outside the home and leaving the home unless accompanied by a male relative.
Frequently asked questions
Can my Afghani resident business be 100% foreign owned?Yes. The shareholders of an Afghanistan business setup can be all foreigners.
Do I need a resident director to setup an Afghani business formation?No. The director of an Afghanistan company formation can be of any nationality.
Does my Afghani business require a resident company secretary?Yes. Appointing a resident company secretary is mandatory for starting an Afghanistan business setup.
Does an Afghani LLC face any business restrictions?No. Afghanistan’s corporate law ensures that an LLC, regardless of ownership, can invest in all sectors of the economy.
Do I have to deposit some capital before Afghanistan company incorporation?No. Afghanistan’s corporate law does not mandate the submission of initial minimum share capital before incorporation.
What will the statutory accounting requirements be for my Afghanistan business setup?All Afghanistan-based business entities must submit their audited financial statements by the 31st of March annually.
Can your firm help me establish contacts with the local business community?Yes. Healy Consultants can assist our Clients in this regard.
Does your firm have business contacts within the Afghanistan Government?Yes. We have contacts within the Government and we will introduce them to our Clients.
Can my Afghani resident company benefit from existing trade relations in Asia?Yes. Afghanistan has good trade and business relations with India. Other than that, an Afghanistan company formation will benefit from huge consumer markets like China and Pakistan.
Can your firm help me in hiring local individuals?Yes. Our firm provides employee recruitment services. Our services include: i) advertising ii) sourcing the right candidate and establishing contact iii) candidate screening, evaluation and scrutiny iv) detailed reference check v) candidate orientation vi) negotiations and hiring assistance and vii) post joining follow ups.
Other manpower services include i) performance evaluation ii) redundancy iii) industrial and employee relations iv) record keeping of all personal data v) compensation, pensions, bonuses and vi) payroll accounting.
I need to raise money for my Afghani resident business. How can your firm help me?Yes. Our firm provides corporate finance facilities in the form of loans, overdrafts or preferential credit terms.
Will Afghanistan International Bank fulfil all major corporate banking requirements?Yes. Afghanistan International Bank is affiliated with Standard Chartered and so, is fully equipped to handle your corporate account needs.
Does Afghanistan have a free trade zone?No. Afghanistan has no free trade zones.
Does an Afghanistan company incorporation require a local registered address?Yes. A local address in the country is required for legal and tax purposes.